SLO City Council votes to spend $24 million on investments
Investments will go toward a variety of different services and projects
– On Feb. 15, the San Luis Obispo County City Council adopted about $24 million in current fiscal year budget adjustments that aim to help pay down pension debt sooner, advance major city goals, support existing services and address emerging community needs.
Due to a mixture of revenue increases and expenditure savings, the 2021-22 fiscal year has offered the City of San Luis Obispo an opportunity to further address major city goals and services with more funding for community and organizational needs.
“Our fiscal health strategies are working. We are now able to make many important one-time and some long-term investments that will help us meet the most vital, highest-priority goals identified by our community last year,” said City Manager Derek Johnson. “COVID-19 impacts are still top of mind, but we’re able to pay down a significant amount toward our pension debt, grant funds to SLO Rep Theater, invest in new legacy projects, address workforce shortages, homeless outreach services, and make major improvements to bridges, bike paths, parks and more.”
As part of its fiscal sustainability goal, the city will make a $12.4 million payment toward its pension debt, the single largest additional payment to date. The payment puts the city on track to paying down its unfunded liability 10 years ahead of schedule, saving taxpayers $19 million in the long run.
The city has earmarked a $3.94 million challenge grant from one-time funds to assure the construction of the new SLO REP Theatre. This key project will foster a new cultural corridor around the Mission, while supporting the downtown economy and complete a large, central piece of the city’s Downtown Concept Plan. Once fully operational, the new theatre could generate an economic impact of more than $3 million annually, according to a SLO REP Economic Impact Report.
The council also took immediate action to address the city’s workforce. The updated mid-year forecast assumes an increase in the city’s staffing costs aligned with the city’s compensation philosophy. A recent compensation study that compared city employee salaries to similar employers locally and in California found that, overall, the city’s base salaries are on average 8.55% below the median. As a general industry standard, base salaries within 5% of the market median are considered competitive.
“We remain committed to providing the high-quality public services our community expects and needs,” Johnson said. “To do that, we must commit to paying fair and competitive salaries that help us attract and retain talented, qualified, and experienced team members.”
Over the next year and half, the city will continue advancing its goals related to housing and homelessness; diversity, equity, and inclusion; and climate action, open space, and sustainable transportation. The city also remains committed to several new and accelerated projects to maintain and improve city streets, bridges, and other infrastructure.
